Balanced approach protects, grows your investment dollars

As we move into a new year, the Investment Team would like to offer a brief commentary on the state of the financial markets. We do so with deepest gratitude for your partnership.

Investment Team Leader Steve Wilson and Chief Financial Officer Brad Crossley share the following message:

Fourth quarter results were mixed, driven by a shift in monetary policy expectations and concern about the long-term path of U.S. fiscal policy. The Federal Reserve cut rates late in 2024, which many characterized as a “hawkish cut” due to the tone conveyed in the accompanying statement. Yet despite these concerns, the U.S. equity markets posted another exceptional result for the 2024 calendar year.

The U.S. economy remains resilient as wage growth and low unemployment lend support to the U.S. consumer. Continued growth in corporate earnings, record profit margins, and recent advancements in artificial intelligence (AI) have driven a wave of capital investment. While U.S. growth remained robust, global markets contended with slowing economic momentum, geopolitical tensions, and currency volatility.

As we look ahead, many of these themes will continue to attract the attention of investors. The proposed policies of the new administration will add more complexity to the analysis. We are optimistic about long-term prospects for the markets, while also preparing for the inevitable period of temporary market declines that lie somewhere ahead. “Two steps forward, one step back” is the general rhythm of the markets. We expect more of the same in the years ahead.

Key takeaways

Collaborative, disciplined approach produces results

The Foundation’s Investment Team (pictured above), working collaboratively with its investment consulting firm, Callan LLC, diligently carries out the Foundation’s investment strategy as outlined in our Investment Policy Statement (IPS). Through this partnership, we employ a balanced approach to grow and protect your investment dollars.

At the heart of our strategy is a thoroughly vetted combination of institutional investment managers. These managers are tasked with highly specific mandates designed to achieve diversified financial market exposures. With the help of Callan, our team monitors and re-evaluates each manager’s inclusion in the portfolio. We are committed to maintaining discipline, balance, and, most importantly, a long-term focus in the decisions we make on your behalf.

Our strategy has produced an enduring track record of solid results. The Diversified Fund’s trailing 10-year return of 7.94% (net of manager fees as of Dec. 31, 2024) outperformed the fund’s blended benchmark. Over the long term, the Diversified Fund has historically ranked in the top quartile of peers when measured against Callan LLC’s peer group database of endowments and foundations.

With God’s grace and the trust of partners like you, the Foundation makes a positive difference in the lives of those we serve. We seek the highest level of excellence in all the services we provide to support your ministry.

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